NSEI:RPGLIFE

Stock Analysis Report

Executive Summary

RPG Life Sciences Limited, an integrated pharmaceutical company, develops, manufactures, and markets branded formulations, generic dosage forms, and synthetic active pharmaceutical ingredients (APIs) in India and internationally.

Rewards

Trading at 91.5% below its fair value

Earnings grew by 133.1% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has RPG Life Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RPGLIFE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

RPGLIFE

-2.0%

IN Pharmaceuticals

-2.9%

IN Market


1 Year Return

19.3%

RPGLIFE

-5.4%

IN Pharmaceuticals

2.8%

IN Market

Return vs Industry: RPGLIFE exceeded the Indian Pharmaceuticals industry which returned -5.4% over the past year.

Return vs Market: RPGLIFE exceeded the Indian Market which returned 2.8% over the past year.


Shareholder returns

RPGLIFEIndustryMarket
7 Day-0.4%-2.0%-2.9%
30 Day0.6%1.6%-1.4%
90 Day50.6%1.9%6.2%
1 Year20.7%19.3%-4.6%-5.4%4.8%2.8%
3 Year-35.1%-36.8%-15.4%-17.2%31.3%24.4%
5 Year250.9%237.9%-7.4%-10.2%42.7%29.9%

Price Volatility Vs. Market

How volatile is RPG Life Sciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RPG Life Sciences undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPGLIFE (₹291.1) is trading below our estimate of fair value (₹3412.99)

Significantly Below Fair Value: RPGLIFE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RPGLIFE is poor value based on its PE Ratio (19.3x) compared to the Pharmaceuticals industry average (15x).

PE vs Market: RPGLIFE is poor value based on its PE Ratio (19.3x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RPGLIFE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RPGLIFE is overvalued based on its PB Ratio (2.8x) compared to the IN Pharmaceuticals industry average (1.3x).


Next Steps

Future Growth

How is RPG Life Sciences forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RPG Life Sciences has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RPG Life Sciences performed over the past 5 years?

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPGLIFE has high quality earnings.

Growing Profit Margin: RPGLIFE's current net profit margins (7.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: RPGLIFE has become profitable over the past 5 years, growing earnings by 25.9% per year.

Accelerating Growth: RPGLIFE's earnings growth over the past year (133.1%) exceeds its 5-year average (25.9% per year).

Earnings vs Industry: RPGLIFE earnings growth over the past year (133.1%) exceeded the Pharmaceuticals industry 19.2%.


Return on Equity

High ROE: RPGLIFE's Return on Equity (14.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RPG Life Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: RPGLIFE's short term assets (₹1.2B) exceed its short term liabilities (₹824.4M).

Long Term Liabilities: RPGLIFE's short term assets (₹1.2B) exceed its long term liabilities (₹99.4M).


Debt to Equity History and Analysis

Debt Level: RPGLIFE's debt to equity ratio (5%) is considered satisfactory.

Reducing Debt: RPGLIFE's debt to equity ratio has reduced from 26.5% to 5% over the past 5 years.

Debt Coverage: RPGLIFE's debt is well covered by operating cash flow (780.6%).

Interest Coverage: RPGLIFE's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Inventory Level: RPGLIFE has a high level of physical assets or inventory.

Debt Coverage by Assets: RPGLIFE's debt is covered by short term assets (assets are 13.4x debt).


Next Steps

Dividend

What is RPG Life Sciences's current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RPGLIFE's dividend (0.82%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: RPGLIFE's dividend (0.82%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: RPGLIFE's dividend payments have been volatile in the past 10 years.

Growing Dividend: RPGLIFE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.9%), RPGLIFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of RPG Life Sciences's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Yugal Kishor Sikri (62yo)

1.2yrs

Tenure

₹22,075,328

Compensation

Mr. Yugal Kishor Choturam Sikri has been Managing Director and Additional Director at RPG Life Sciences Limited since October 1, 2018 .He served as an Independent & Non-Executive Director at RPG Life Scien ...


CEO Compensation Analysis

Compensation vs Market: Yugal Kishor's total compensation ($USD311.99K) is above average for companies of similar size in the Indian market ($USD50.82K).

Compensation vs Earnings: Yugal Kishor's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: RPGLIFE's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: RPGLIFE's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • B. Sundaram (52yo)

    Business Head of API - International & Specialty

    • Tenure: 4.3yrs
  • Rajesh Shirambekar

    Head of Legal

    • Tenure: 8.1yrs
  • Yugal Kishor Sikri (62yo)

    MD & Additional Director

    • Tenure: 1.2yrs
    • Compensation: ₹22.08m
  • Suchitra Tiwari

    Head of Regulatory & Project Management

    • Tenure: 0yrs
  • Mahesh Narayanaswamy

    Vice President of Finance

    • Tenure: 3.4yrs
  • Tushar Joshi

    Head of Human Resources

    • Tenure: 3.3yrs
  • Himmat Patel

    Head of Domestic Manufacturing & Sourcing

    • Tenure: 2.7yrs
  • Kartick Patra

    Head of API Operations & Procurement

    • Tenure: 2.7yrs
  • Rajesh Chopra

    Site Head - F2

    • Tenure: 0yrs
  • Milind Gujar

    Chief Quality Officer

    • Tenure: 0.9yrs

Board Members

  • Lalit Kanodia (78yo)

    Independent & Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: ₹615.00k
  • Harsh Goenka (62yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹600.00k
  • Manojkumar Maheshwari (53yo)

    Independent & Non-Executive Director

    • Tenure: 15.4yrs
    • Compensation: ₹600.00k
  • Mahesh Gupta (63yo)

    Independent & Non-Executive Director

    • Tenure: 16.2yrs
    • Compensation: ₹704.00k
  • Narendra Ambwani (71yo)

    Independent & Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹664.00k
  • Yugal Kishor Sikri (62yo)

    MD & Additional Director

    • Tenure: 1.2yrs
    • Compensation: ₹22.08m
  • Sachin Nandgaonkar (50yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹815.00k
  • Zahabiya Khorakiwala

    Independent & Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: ₹410.00k

Company Information

RPG Life Sciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RPG Life Sciences Limited
  • Ticker: RPGLIFE
  • Exchange: NSEI
  • Founded: 1968
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹4.743b
  • Shares outstanding: 16.54m
  • Website: https://www.rpglifesciences.com

Number of Employees


Location

  • RPG Life Sciences Limited
  • RPG HOUSE
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532983BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2008
RPGLIFENSEI (National Stock Exchange of India)YesEquity SharesININRJun 2008

Biography

RPG Life Sciences Limited, an integrated pharmaceutical company, develops, manufactures, and markets branded formulations, generic dosage forms, and synthetic active pharmaceutical ingredients (APIs) in In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:53
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.